The corporate income tax (CIT) rate in Mexico is 30% . This rate applies to Mexican resident taxpayers on their worldwide income, and to foreign residents on income derived from Mexican sources or attributed to their permanent establishments in Mexico.
American corporations reinvest in Mexico more than here in the states
Because
Yes, US corporations can be subject to corporate income tax in Mexico, depending on their activities in the country
.
Here’s how it generally works:
- Permanent Establishment: If a US corporation establishes a “permanent establishment” (PE) in Mexico, such as a branch office, factory, or a place of business through which its operations are conducted, it will generally be treated as a Mexican resident corporation for tax purposes. This means it will be subject to Mexico’s corporate income tax (ISR) on its income earned in Mexico, typically at a rate of 30%.